Gold Rises 0.9% to Trade at $4700 on Wednesday

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On Wednesday, gold (XAU/USD) is up 0.9% and trading at $4,700 per troy ounce (31.1 grams).

Platinum on the spot market (XPT/USD) is rising by 1.2%, currently quoted at $1,975 per troy ounce (31.1 grams).

The main trading venues for precious metals are concentrated in the London Over-the-Counter (OTC) market (LBMA), the U.S. futures market (COMEX), and the Shanghai Gold Exchange (SGE).

These three centers account for over 90% of global trading volume:

1. LBMA (London): The hub for OTC trading, where major banks and dealers exchange physical metals, setting benchmark prices (fixing).

2. COMEX (New York): The primary venue for trading futures and options on precious metals, setting the U.S. benchmark prices.

3. SGE (Shanghai): The key Asian center, which is growing in influence, offering physical gold trading and impacting Asian supply and demand, particularly in the context of China.

It is worth noting that the gold market exhibits high liquidity:

- Futures trading averages around $50-70 billion daily;

- The OTC segment sees even larger volumes—approximately $60-80 billion per day.

Overview provided by Alexey Grishchenko, Ph.D., Professor of Operational and Sectoral Management at the Higher School of Management, Financial University under the Government of the Russian Federation.